Fabrinet (FN)
Interest coverage
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 299,795 | 293,842 | 274,374 | 266,082 | 261,568 | 252,379 | 242,135 | 227,809 | 207,398 | 189,874 | 175,617 | 161,897 | 151,584 | 139,843 | 129,935 | 126,747 | 122,286 | 129,263 | 131,352 | 131,780 |
| Interest expense (ttm) | US$ in thousands | 124 | 400 | 773 | 1,126 | 1,472 | 1,264 | 938 | 787 | 432 | 649 | 858 | 885 | 1,100 | 1,030 | 986 | 902 | 3,044 | 4,520 | 5,705 | 7,140 |
| Interest coverage | 2,417.70 | 734.60 | 354.95 | 236.31 | 177.70 | 199.67 | 258.14 | 289.47 | 480.09 | 292.56 | 204.68 | 182.93 | 137.80 | 135.77 | 131.78 | 140.52 | 40.17 | 28.60 | 23.02 | 18.46 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $299,795K ÷ $124K
= 2,417.70
Fabrinet's interest coverage ratio has shown significant fluctuations over the past several quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
In the most recent quarter ending June 30, 2024, Fabrinet's interest coverage ratio was strong at 2,417.70, indicating that the company generated operating income more than 2,400 times higher than its interest expenses. This suggests a very comfortable position in terms of servicing its debt obligations from its operational earnings.
However, looking at the trend over the previous quarters, there have been some fluctuations in the interest coverage ratio. For instance, in the quarter ending March 31, 2024, the ratio dropped to 734.60, signaling a decrease in the ability to cover interest expenses with operating income compared to the previous quarter.
Despite these fluctuations, Fabrinet generally maintains a healthy interest coverage ratio, which is crucial for investors and creditors to assess the company's financial health and ability to manage debt. It is essential for the company to monitor and manage this ratio to ensure ongoing financial stability and risk management.
Peer comparison
Jun 30, 2024